The document discusses strategies for implementing a successful value chain planning process. It recommends starting with high impact areas and key performance indicators, creating transparency between departments, and improving supply chain functions through various techniques like demand planning and pre-staged inventory. The next steps discussed are stabilizing the new system platform, optimizing additional capabilities, and transforming related processes.

1. Value Chain Planning
APRIL 1, 2016
Developing a Successful Supply Chain Strategy

2. 2
• Value Chain Planning implementation is a journey , not a project –
each phase has its own short time to value, but one should have a
long term vision
• Where to start – Focus on the highest bang for our buck and don’t
wait for ERP Implementation or upgrade
• Pick your critical KPIs – one cannot be perfect at all measures –
which KPIs defines you as a company, and meet our strategy?
• Create transparency between All departments, Sales, Marketing,
Finance, and SC and align our Opportunities
Key Takeaways

3. 3
Improve Supply Chain Functions
Increase Efficiency of All Resources
• Deploy for Growth (DFG)
• Design for Manufacturing (DFM)
• Build/ Rebuild Foundational Capability
• Link into the S&OP process
• Demand, Inventory, Capacity loading all planned in advance
• Pre-staged Inventory (VMI)
• Integrated Raw Material Planning (MRP)
• Collaborative Planning/ Inventory Risk pooling
• Integrated information data flow
• Data/ Systems- Scorecard, Assessment, Leading indicators
• People Development- Build capability, identify the Roles

4. 4
Put VCP Capabilities to Work
• Premise- Oracle brings a set of supply chain capabilities that are
not being utilized in the initial rollout. There are other tools in
use in our supply chains that need to be integrated into the
Oracle processes
• Understand the full functionality of Oracle and how best to
leverage that in our businesses
• Select a pilot plant/ partner to employ enhanced capabilities-
Chose ??
• Establish best practices
• Drive operational and administrative efficiencies
• Develop or improve integration with key partners and suppliers

5. 5
Next Steps
Flexibly Meet Needs without Customization
• The supply chain will go live in the third quarter of 2016. SC and
IT team are focused on the following:
• Stabilizing the R12 platform and all the new capabilities that
have been implemented.
• Optimizing the platform for any additional functionality and
capabilities, or enhancements to existing ones.
• Transforming other processes related to the supply chain. The IT
foundation between order management and the supply chain is
under way, which will facilitate the buildout of fully automated
and integrated manufacturing execution system (MES).

6. 6
• Analyze enterprise data & organization structure
• Review planning approach
• Analyze item information & View Bill of Material data
• Explain types of BOM (ENG, MFG, PTO, ATO, Phantom)
• Create and Maintain BOM and maintain Routing & Resources
• Explain Engineering change order (ECO) and its process
• Analyze sourcing information, View supplier data, Define lead
time
• Describe the usage of MRP plan versus Master Production Plan
and Master Production Schedule
• Describe the benefits of Holistic Plans
Modeling the Supply Chain

7. 7
• Describe global forecasting
• Spreading Global Forecasts
• Consuming Global Forecasts
• Recommending Sales Order changes
Planning Information and Planner Workbench
• Explain the significance of various types of data used for planning
• Explain key functionalities of planner workbench
• Describe how to research data for planning
• Describe planning results
• Describe planner strategies
• Copy and manage plans
Forecasting & Planning

8. 8
VCP Roadmap Q3 2016
Implementation First Step - Unconstrained Planning
• No Material or Resource Capacity limitation
• Enforce Due Dates
• Balance Supply and Demand – Release Planned Orders and handle exceptions
• Limited Organizations (understand and improved data accuracy)
Next Step - Constrained Planning
• Enforce Capacity Constraints
• Enforce Supplier Capacity Constraints
• Constraints based Optimization
• End item and component substitution
• Alternate components, resources, suppliers, facilities, and ship methods
• Objective based Optimization with Decision Rules
Provide Single Source of Truth for All Inventory

9. 9
Constrained Plans – Enforce Capacity Constraints with Decision Rules
• Describe Enforce Capacity Constraints with Decision rule plans
• Interpret End item substitution/Substitution components
• Setup and use Alternate resources/BOMs/Routings
• Planning Decision rule hierarchy
• Create demand priority rules
• Create and assign calendars
• Set constrained plan options
• Set aggregation levels
• Run constrained plan
• View material constraints
• View resource constraints
VCP Constrained Planning

10. 10
• Setting plan options for Cost Based Optimized Plan
• Describe Optimized Plans
• Describe Desired Outcomes from Optimized Plan
• Setting Penalty factors for Optimized Plans
• Configuring targets for KPIs and reviewing results
• Planning Strategies
• Perform Net Change Plan simulation
• Compare Simulation Plan results
Cost-Based Optimized Plans

11. 11
• Advanced Supply Chain Planning offers comprehensive support for companies
that focus more on solving distribution and replenishment problems.
• Leverage a comprehensive Distribution Planner Workbench that presents
global visibility of material positions, automates allocations and redistribution
between regional and central distribution centers, with the ability to manually
override, consolidates individual shipments into optimal truckloads.
• The Workbench highlights exceptions, and releases planning
recommendations for execution, while taking into account kitting, end item
substitution, date effective sourcing, distribution and allocation rules, global
forecasting (dynamic order fulfillment), alternates (components, suppliers,
facilities, and ship methods), warehouse capacity, shelf life, and supplier
capacity constraints.
• Supply chain pegging - Full pegging enables us to quickly see all the way from
end demand to the lowest level component or resource requirements. We can
easily peg up and peg down from demand to supply, or reduce the pegging
information to view end demands or exceptions only.
Distribution Planning

12. 12
Tactical supply chain planning
• Rapid Planning provides to fine tune what planned orders can and cannot be
overridden in the simulation so preserve key decisions already made in the batch
tactical plan. When done with the simulations, the results can be published back to
VCP which will enforce the decisions made in its next run.
Collaborative planning
• Enables us to pull our partners into the planning process. For example, the output
of our plan can be published to our suppliers via Oracle Collaborative Planning
directly from the Planner Workbench. The commitments from our suppliers come
back as supplier capacity that is considered as a constraint in determining what we
can produce to meet our demand based on our supplier capabilities.
Continuous improvement
• KPIs that highlight the effectiveness and efficiency of the supply planning process.
In combination with extensive reports and workflow-enabled exception alerts,
these enable users to discover areas for focus as well as to track the benefits of
continuous improvement programs.
• Planners can leverage the integration with Advanced Planning Command Center
(APCC) as a starting point for their analysis and quickly drill down from aggregate
to details, and take corrective actions.
Drive to Operational Excellence

13. 13
VCP Roadmap 2017
• Agile Product Lifecycle Management (PLM): Can be used to speed
development and launch of new products, providing a competitive edge and
minimizing risk of lost market share. Agile PLM allows visibility into product
genealogy, reducing problems and product liability risk.
• Oracle Inventory Optimization: Can be used to develop plans for adjusting
inventory levels and placement in the supply chain network, thereby
maximizing service levels while minimizing costs.
• Demantra Sales and Operations Planning: Provides technology enablement
for a continuous and proactive sales and operations planning process that
profitably balances demand, supply, and budgets around a one-number
forecast.
• Demantra Demand Management: Enables a firm to sense demand from
multiple data sources including point of sales and syndicated data, and analyze
demand data at various levels to understand the detailed behavior of demand.

14. 14
Your Return on Innovation Depends on Your Ability to…
• Evaluate and Select the Best Ideas, Proposals and Portfolio to
Maximize Profitability
• Synchronize all the Activities, Resources & Schedules Across a
Globalized Value Chain, to Rapidly Develop Those Products –
While Managing Cost, Quality and Compliance
• Quickly Commercialize Those Product Across Multiple Sales
Channels and Manufacturing Sites
Key Challenges

15. 15
Firefly Project Status
• “Out of the box” process flows completed
• Demonstrated new modules, fit/gap analysis
• Completed 03/31/16
CRP1
Conference Room
Pilot
• End to end biz processes on a completely configured
system with data conversion
• Validate requirements (no customization)
• Scheduled TBD (05/02/16)
CRP2
Conference Room
Pilot
• Validate processes and system readiness by SMEs and
biz team and “sign-off”
• Train Team Members
• Scheduled TBD (06/04/16)
UAT
User Acceptance
Test

16. 16
Our Success Factors
• Strong executive sponsorship & support
– Monthly steering committee meetings
– Update Board members on quarterly basis
– Monthly, Quarterly blogs and update in “All Employees” meeting on quarterly basis
• A dedicated, smart, and committed team !!
• Effective organizational change management
– Thorough stakeholder analysis
– End-users training plan and training material preparation
– Document and communicate project progress, what’s changing
– Regular updates to Business Change Leads
• Effective project management
– Catch warning signals early on and proactively taking actions
– Detailed planning and effective monitoring & controls
– Clearly defined milestones and deliverables
– Well defined roles & responsibilities
– Processes & infrastructure – templates, change management, risk management, issues
& decision logs, defect tracking, collaboration tools etc

17. 17
Tips & Techniques
• Clearly define project objectives and scope
• Facts and assumptions
• Communication plan
• Detailed WBS, space milestones evenly
• Monitor and control
• Data cleansing, cut-over planning
• Effective organizational change management
• Current system, customization, processes, and pain points
• Team’s capabilities and training needs